Report of Winter Internship at SRM Star Mercedes Benz,

Lucknow
(January 10th - 24th, 2020)

Project Report

submitted in partial fulfillment for the award of degree of

Master of Business Administration

Of

Isabella Thoburn College (Professional Studies), Lucknow

Submitted by:
Nazreena Mukherjee
MBA- SEM 1

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 ACKNOWLEDGEMENT
It is a great pleasure for me to acknowledge the assistance and contributions of all the people
who helped me to make my industrial training a success.

I would also like to thank all the officials for the assistance and guidelines they have given
towards this program. I would like to specially thank, Dr. David Charles (Program Director) of
Isabella Thoburn College of Professional Studies) for all the support and facilities provided.

I would like to express my hearty gratitude to Mr. Neeraj Agarwal (Director), Mr. T.T.
Padmanabhan (CEO) and Mrs. Monika Gurdasani (HR Manager) of SRM Smart Hoop Pvt. Ltd.
for providing valuable data source, information and for giving me an opportunity to do internship
in their organization.

And, above all I thank Almighty for His blessings for the completion of this endeavor.

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 TABLE OF CONTENTS

S. NO. TOPIC PAGE NO.

1. EXECUTIVE SUMMARY 4

2. COMPANY PROFILE 5

ORGANISATIONAL
3. STRUCTURE 7

EMPLOYEE
4. ENGAGEMENT 11

OBSERVATION AND
5. LEARNING 22

6. CONCLUSION 23

7. BIBLIOGRAPHY 24

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 EXECUTIVE SUMMARY
This report details a winter internship at Mercedes-Benz SRM Star in Uttardhauna,
Tiwari Ganj, Faizabad Road, Lucknow, Uttar Pradesh. The report here begins with the study of
Mercedes-Benz as an organization bringing out its history, key goals, beliefs, ideas, human
relationships and organization structure that makes it successful.

The foundation for profitable growth is formed by a forward-looking product portfolio, strong
brands and a global presence. The goal of Mercedes-Benz Cars is to ensure that they play the
leading role in the worldwide premium segment over the long term. They also aim to enhance
the smart brand’s role in urban and electric mobility.

The goal is to further develop the Group and make it even more successful. It seeks to recruit the
most talented individuals by further promoting a passion for innovation and encouraging the
employees to take on additional responsibility. The organization has adopted an employee-
focused culture in order to ensure they remain an attractive employer that can rely on the best
team in the automotive industry. This is done through employee engagement activities. It is an
approach that increases the chances of business success, contributing to organisational and
individual performance, productivity and well-being.

The report also discusses the five closely linked strategic components that the company utilizes
to shape the biggest transformation in the company’s history. The 5C strategy which are -

 Strengthening its global core business (CORE)

 Leading in new future fields (CASE)
 Adapting corporate culture (CULTURE)
 Strengthening customer and market-focused structure (COMPANY)
 At the center of all our activities is the fifth and most important C: the customer
(CUSTOMER)

The processes and organization focus on the customers – they work with and for their customers
to ensure they provide them with the best products for their needs and the best solutions for their
mobility requirements.

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COMPANY PROFILE
Mercedes-Benz is a German global automobile marque and a division of Daimler AG.
Mercedes-Benz is known for luxury vehicles, vans, trucks, buses, coaches and ambulances. The
headquarters is in Stuttgart, Baden-Wurttemberg. The name first appeared in 1926
under Daimler-Benz. In 2018, Mercedes-Benz was the largest seller of premium vehicles in the
world, having sold 2.31 million passenger cars. Mercedes-Benz origins' come from Daimler-
Motoren-Gesellschaft's 1901 Mercedes and Karl Benz's 1886 Benz Patent-Motorwagen, which is
widely regarded as the first gasoline-powered automobile.

The slogan for the brand is "the best or nothing”. This statement conveys how Mercedes-Benz
aspires to develop and build highly desirable, top-class vehicles. The same passion, pledge and
commitment apply to the Mercedes-Benz Service too. The bouquet of world-class After-Sales
products will not only attend to every need of your Star but will also redefine the concept of
ownership experience with a focus on providing end-to-end customer delight.

Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the Benz
Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-
Motoren-Gesellschaft (Daimler Motors Corporation).

In June 1909, Daimler-Motoren-Gesellschaft (DMG) registered both a three-pointed and a four-

pointed star as trademarks, but only the three-pointed star was used. To DMG, the star
symbolized Gottlieb Daimler's aims for universal motorization: on land, water and in the air.

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SRM Group, Lucknow (UP)
SRM Star – SRM Smart Hoop Pvt. Ltd.

(Authorized Dealership of Mercedes-Benz Passenger Cars for entire UP (Except NCR)

The founders smart hoop is a family-run organization established in the year 2013. They started
off as an automobile workshop catering to all Indian and imported cars.

The year 2013 marked an important era in the history of SRM Group when Smart Hoops was
established. With just a handful of cars and loyal employees, the Chairman introduced the
automobile that is with luxury, prestige and value.

What started off as a repair facility for imported cars is now the icon of excellence with a state-
of-the-art Sales Showroom and Customer Services facility. The company operates under the
guidance and leadership of Mr. Bhartendu Agarwal, Mr. Neeraj Agarwal & Mr. Navin Agarwal
as the managing Directors of the company.

Their auto house has more than 100 dedicated employees, who are professionally and technically
trained and very competent. They are committed to the Mercedes-Benz philosophy of product
quality & excellent customer service. SRM Smart Hoops Pvt. Ltd. has a 3S facility, area of
48000 sq. ft. in the main automobile Centre.

They have sold more than a thousand luxury vehicles in entire Uttar Pradesh and have serviced
more than 12000 vehicles since its inception.

As a brand, they are the No. 1 in Luxury Market in India with Highest Sales and Customer
Satisfaction Index.

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 ORGANISATIONAL STRUCTURE
The organizational structure of Mercedes-Benz is a "Functional structure”.

The employees distributed in the structure are as per their departmental functions and they are
working according to this.

Their employees work in groups under same field and same area and share knowledge while
working and supporting each other.

Functional Organizational Structure:

This structure is very similar to the traditional line structure, but there are far more lines of
communication. In this organizational structure example, we can see that although both directors
have people over whom they have direct authority, they can also send information to managers
they don’t directly control. The same is true of the managers’ relationship with teams.

The purchasing department may want the financial manager to pay an authorized supplier. No
problem. The team member goes straight to the financial manager. A team leader in production
needs help from the HR manager, or HR wants to task the production team leader with
something. There’s a direct line of communication open.

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Communication is vital to the successful implementation of this organizational structure.

Strategic Intent

Mission:

 Mercedes does its best for customers who expect the best and live a culture of excellence
that is based on shared values.
 Mercedes's corporate history is full of innovations and pioneering achievements; which
helps in leadership in the automotive industry.

Vision:

 Mercedes is passionately shaping its future.

 Mercedes feel inspired and obliged to continue this proud tradition with ground-breaking
technologies and high-quality products.

Porter's 5 Forces

1. Threats of new entrants:

 When barriers are high, it is more difficult for new competitors to enter the market.
 High capital requirements.
 Advanced technologies make it difficult for new competitors to enter the market.
 Strong brands are critical to compete.

2. Power of suppliers:
 When suppliers are reliant on high volumes, they have "less" bargaining power.

3. Power of buyers:
 The Bargaining power of buyers is high.
 When customers cherish particular products, they end up paying more for that one
product.
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4. Rivalry among competitors:
 Market size limited but very profitable segment.
 Competitors try to build up market shares.
 High exit barriers.
 Government policies and regulations can dictate the level of competition within the
industry.

5. Threats of substitutes:
 Customer loyalty
 Less price sensitivity in this premium sector
 Less alternative in this premium segment

Competitive strategy

 The company uses a “Differentiation Strategy”.

Culture

 The company has a " Bureaucratic culture" and the organizational life cycle is at "
Elaboration stage".

Structural Dimensions
i. Formulization
ii. Specialization
iii. Hierarchy of authority
iv. Centralization

Task environment

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 It includes all sectors that the organization directly interacts with and have direct impact on
the ability of the organization to achieve its goals. One of the most important things that
organisations must put into consideration is the competition that it faces, no doubt all companies
that at automobile industry face very aggressive competition among them. Mercedes is a huge
organization and well-known one, it faces aggressive competition from BMW, Volvo, Audi,
Toyota, Ford.

Organizational structure determines the executive and managerial hierarchy and corporate
communication. The six elements of organizational structure help to create the figure of
interrelationship and determine how managerial staff goes about effecting change in the
organization. These six elements include: work specialization, departmentalization, chain of
command, span of control, centralization / decentralization, formalization.

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 EMPLOYEE ENGAGEMENT

Overview
The term employee engagement relates to the level of an employee's commitment and
connection to an organization. Employee engagement has emerged as a critical driver of business
success in today's competitive marketplace. High levels of engagement promote retention of
talent, foster customer loyalty and improve organizational performance and stakeholder value.

Employee engagement is a property of the relationship between an organization and its

employees. An “engaged employee” is one who is fully absorbed by and enthusiastic about their
work and so takes positive action to further the organization’s reputation and interests.
Employee engagement is the emotional commitment the employee has to the organization
and its goals. 

An engaged employee cares about their work and about the performance of the company, and
they want to feel that their efforts could make a difference. It is generally seen as an internal state
of mind; physically, mentally and emotionally that binds together the work effort, commitment
and satisfaction in an employee.

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What differentiates engaged and disengaged workers?
Behaviours of engaged and disengaged employees:

ENGAGED BEHAVIOURS DISENGAGED BEHAVIOURS

i. Optimistic Pessimistic

ii. Team-oriented Self-centered

iii. Goes above and beyond High absenteeism

iv. Solution-oriented Negative attitude

v. Selfless Egocentric

vi. Shows a passion for learning Focuses on monetary worth

vii. Passes along credit but accepts blame Accepts credit but passes along blame

Disengaged workers feel no real connection to their jobs and tend to do the bare minimum.
Disengagement may show itself in a number of common ways, including a sudden 9-to-5-time
clock mentality, an unwillingness to participate in social events outside the office or a tendency
to fox hole oneself apart from peers. It becomes most noticeable when someone who's normally
outgoing and enthusiastic seems to fall by the wayside and has nothing positive to contribute.
They may resent their jobs, tend to gripe to co-workers and drag down office morale.

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How is employee engagement measured?

Employee engagement surveys have been developed specifically to measure the performance,
strategic alignment, competency and satisfaction of contributors. Engagement surveys must be
statistically validated and benchmark against other organizations if they are going to provide
useful results. Without these things, it is difficult to know what you are measuring and whether
the results are good or bad. Engagement can be accurately measured with short surveys that
contain just a few questions, but such short surveys can only provide an indication of whether
employees are engaged. They have a hard time explaining why employees are engaged or
disengaged because they lack detail. Without sufficient information, an organization cannot
develop meaningful activities, training programs, strategies, and initiatives to raise levels of
engagement.

In order to get a complete picture of employee engagement, a survey needs to include about 50 to
80 questions that cover a complete range of relevant topics. There should also be open ended
questions to further diagnose potential engagement problems in a company.

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 Components of employee engagement

There are two primary factors that drive employee engagement. These factors are based on
statistical analysis and widely supported by industry research.

 Engagement with The Organization measures how engaged

employees are with the organization as a whole, and by extension,
how they feel about senior management. This factor has to do with
confidence in organizational leadership as well as trust, fairness,
values, and respect - i.e. how people like to be treated by others,
both at work and outside of work.

 Engagement with "My Manager" is a more specific measure of

how employees relate to their direct supervisors. Topics include
feeling valued, being treated fairly, receiving feedback and direction,
and generally, having a strong working relationship between
employee and manager based on mutual respect.

The two Organization factors deal with how employees relate to and connect with
the organization.

The two Manager factors look at whether managers display the essential skills and
behaviours needed to be effective.

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Who should be involved in employee engagement
initiatives?

Research shows that many organizations

struggle to bridge engagement survey
results to its financial impact on the
organization. It is important to understand how engagement affects a company’s bottom line.

A high-performing workforce is necessary to remain competitive, even survive. Developing

programs to raise levels of employee engagement must be intentional, have meaning, purpose
based on survey results.

HR can lead the charge to create an effective employee engagement strategy, but it needs to be
embraced by the entire organization. There is a clear gap between the optimism of upper
management and what middle managers experience with their teams. To understand the whole-
organization picture, it’s essential to have an effective, multi-directional communication strategy
in the organization. Effective communication is one of the most important factors that is most
likely to bring company success. Organizations that thrive are able to articulate and communicate
what success looks like – as individual employees, teams and departments, and the company as a
whole. This increases engagement organization-wide.

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Process of Employee Engagement
As it is an established fact that there is a clear link between organisational performance and
employee engagement, every organisation seeking sustenance and growth in the ever-changing
world of work quickly respond to the needs of employees along with designing and
implementing a customised process to increase the levels of employee engagement. The
following are a few basic steps in this process based on the best industry practices.

1. Prepare and Design: The first step in the process is about discovering the specific
requirements of your organisation and deciding the priorities. After that a customised
design of carrying the whole process can be designed. It is recommended to seek advice of
expert management consultant in order to increase the chances of getting it done right at the
first attempt.
2. Employee Engagement Survey: Design the questions of the employee engagement survey
and deploy it with the help of an appropriate media. It can be either in printed form or set
online depending upon the comfort level of the employees and your questionnaire
evaluation process.
3. Result Analysis: It is the most important step in the entire process. It is time when reports
are to be analysed to find out what exactly motivates employees to perform their best and

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 what actually disengages them and finally compels them to leave the organisation. The
results and information can then be delivered through presentations.
4. Action Planning: ‘How to turn the results of the survey in to an action’ is a challenging
question that organisations need to deal with the utmost care. Coaching of line managers as
well as HR professionals is very important in order to tell them how to take appropriate
actions to engage employees. They should also be told about do’s and don’ts so that they
can successfully implement the changes.
5. Action Follow-up: Action follow up is necessary in order to find out if the action has been
taken in the right direction or not and if it is producing the desired results.

With this, communication and project management processes are the backbone of the entire
employee engagement process. Communication involves plan follow-up, providing timely
information and involvement of each level of organisational hierarchy. The project management
process includes careful planning, watchful resource management, vigilant budget control and
monitoring the actions.

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Benefits of Employee Engagement
An engaged workforce forms an emotional connect with the organization that helps them to:

1. Go the Extra Mile to Achieve Individual and Company Success

2. Innovate at Workplace
3. Attract customers and employees
4. Become Evangelists of the company, its product and processes
5. Infuse energy and positivity at workplace.

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The importance of employee engagement can’t be overstated – employee engagement strategies
have been proven to reduce staff turnover, improve productivity and efficiency, retain customers
at a higher rate, and make more profits. Most importantly, engaged employees are happier,
both at work and in their lives. When you’re engaged, it infuses everything you do with purpose,
energy, and enthusiasm.

 For engaged employees who are happy and completely committed to their work, it’s more than
just a pay check – it is the dedication towards their employers and role that makes them
passionate about their work, which is often reflected in their individual outcomes.

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EMPLOYEE ENGAGEMENT ACTIVITIES IN
MERCEDES-BENZ SRM STAR
When you improve employee engagement, you improve performance. Thus, by engaging the
employees of the organization in fun activities, it helped them to integrate their efforts, build
coordination and team work, communicate effectively, etc.

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 OBSERVATION AND LEARNING
Employee engagement is an organizational effort that requires a long-term vision in a business
strategy context, if it is to improve productivity and retention rates.

You have to identify what your company needs and develop the right strategy. Only then should
you focus on how to measure employee engagement and what activities to implement.

Employers have numerous opportunities for "engageable moments," when they can motivate and
provide direction for employees.

Formal opportunities include:

 Recruitment; onboarding.
 Performance reviews.
 Goal setting.
 Training.
 Communications by senior leaders.
 Employee surveys.

Informal opportunities include:

 Coaching.
 Mentoring.
 Career development discussions.
 Ongoing performance feedback.
 Recognition programs.
 Company social events.
 Personal crises.

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 CONCLUSION
India’s automobile industry is facing its worst crisis since records began. While brands remain
hopeful that demand will pick up, there are new trends are reshaping consumer habits that may
add to further challenges to the industry.

Facing its worst crisis since records began, India’s automobile industry is at a crossroads. Until
recently, it was on track to become the world’s third largest market in the next three years but a
contraction in vehicle sales has meant that the future of India’s automotive industry -which
accounts for 40 percent of the country’s manufacturing GDP, appears uncertain for the time
being.

The largest luxury carmaker in the country, Mercedes-Benz India, recorded a year-on-year sales
decline of 15.9 per cent, selling 9915 units between January - September 2019 as opposed to
11,789 units, sold in the same period last year. The share of luxury cars in India — at an average
35,000-40,000 units in the last three-four years, or about 1.17 percent of the overall passenger
vehicle market — is the smallest among the large economies.

Indian government’s policy push to promote e-mobility is highly exciting. As the world’s second
largest automobile market after China, exciting times lie ahead for the fans of electric mobility
and luxury cars.

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 BIBLIOGRAPHY

 https://www.luxurysociety.com/en/articles/2019/10/indias-luxury-automobile-industry-
gloom-doom-or-zoom/
 file:///C:/Users/hp/Desktop/Developing%20and%20Sustaining%20Employee
%20Engagement.html
 file:///C:/Users/hp/Desktop/About%20the%20program%20_%20SRM%20star%20-
%20Mercedes%20Benz%20dealer.html
 https://prezi.com/gfvri-4shn03/organizational-analysis-design/

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